Swiftel’s primary asset is the Panton platinum group of metals project located south of the Argyle diamond mine in the Kimberley region of Western Australia.
The Panton project has been around for many years – it was first discovered from surface sampling in the mid-1960s. Sporadic exploration continued on the prospect in 1972 before it was ultimately properly mapped and drilled up in the 1980s.
A mining feasibility conducted in 1989 found the deposit to be uneconomic due to the low PGE prices of the time and low (70-75%) metallurgical recoveries of platinum and palladium.
And so, Panton, like a number of other Australian PGE deposits, has sat in the ground ever since.
However, current soaring PGE prices (almost six times higher than the price used in the feasibility study), the expectation of finding more ore, and improvements in PGE extraction technology developed in South Africa and North America suggest Panton can be mined profitably.
The company’s aim is to produce a high-grade concentrate on site, which it can ship to overseas buyers. This will avoid the major capital cost of complex smelter and refinery.
Currently Panton has an established resource of 2 million tonnes at 6.02 grams of combined platinum, palladium and minor gold per tonne (387,000 ounces).
The deposit occurs in a layered mafic-ultramafic sill-like body, about 2km thick and 9km long, folded into a tight synclinal structure. Broadly speaking, the sill consists of a lower ultramafic (dunite) series and an upper mafic (gabbro series). PGE mineralisation occurs in the dunite in reefs rich in chromite. There are five chromitite layers.
Platinum Australia is looking to raise the $6 million by issuing 30 million 20c shares together with one attaching free option at a strike price of 20c (expiring September 1, 2004). PA will pay Swiftel approximately $1.3 million and 296,819 vendor shares for its assets.
PA’s board will primarily be made up of Swiftel staff. Peter Allchurch, who also wears another hat as managing director of Amity Oil, will become the executive chairman. The other executive director and company sectary will be Roger Macliver. The non-executives will be Michael Blakiston, Eric Hughs and Riccardo Vittino.
The underwriter and sponsoring broker is DJ Carmichael.
